For private circulation only
October 2015 | Volume 1 | Issue No. 4
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Decode Immense Omni-channel Retailing Possibilities
with Hands-on Tips from Industry Stalwarts
The Analyst_Oct2015.indb 1
Mr. Chandru Kalro, Managing Director, Shares
the Success Mantra Behind TTK Prestige
15/09/2015 08:01:17 AM
CONTENTS
15
Driven by Passion,
Excelled by Perfection
In an exclusive interaction, Mr. Amit Burman, Vice
Chairman, Dabur India Ltd & Chairman, Lite Bite Foods,
talks about his vision, passion and mantra for success.
Leadership Series
04 Pressure Tactics
Mr. Chandru Kalro, Managing Director, TTK
Prestige, speaks about their unique strategic
positioning to stay ahead of competitors.
CEO Roundtable
08 Brick Meets Click
Harnessing the best of all worlds ie brick & mortar
shops, digital media, television as well mobile,
omni-channel retailing is being seen as having
huge potential.
Interviews
12 Brewing Success
Mr. Karuna Shankar Pande, Supply Chain Director,
SABMiller India Ltd, believes in holistic path to
progress.
20
23
A Pixel Perfect Value Proposition
Mr. Ashutosh Varshney, Head – SCM & Logistics,
Canon India Pvt. Ltd., shares his success mantra
to deliver products faster & safer to grab major
market share.
Born out of a passion for cooking and exploring
international cuisines, Chef’s Basket is probably
the first Indian brand offering consumers to try
gourmet cuisines in the comfort of their home.
26
Treading Success Beyond
Technicalities
Mr. Anand Maithani, Head – SCM (Asia Pacific,
Middle East and Africa), Apollo Tyres Ltd, says that
modern day supply chain managers have to move
away from being purely functional managers to
business managers.
30
Magic Recipes @ Your Doorsteps
Healing To Holistic Wellness
Mr. Tarun Arora, Chief Operating Officer &
Director, Zydus Wellness Ltd, deciphers the many
facets of healthcare & wellness in the country.
Snippets
28 Logistics Beat
It’s Happening In India
News Around the World
Editor: Prerna Lodaya
Cover Story Photo Courtesy: Lite Bite Foods Pvt Ltd
02 | The Analyst • October 2015
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15/09/2015 08:01:18 AM
MESSAGE
Dear Readers,
The start of 2015 looked extremely promising with many
announcements by the Government of India to open up
new vistas of opportunities for the industrial growth of the
country, including Goods and Services Tax (GST).
As the year has progressed, and after the monsoon session of
the parliament, it became clear that consensus on GST is not going to come that easily. With an
important state election coming up, cooperation from other parties on certain important bills is
going to stall, leading to further uncertainty.
The uncertainty has also multiplied due to events on the world stage. The Chinese stock
markets have been falling since mid-June and yuan has been devalued. Chinese troubles have
sent the prices of commodities such as oil and copper sliding. Crude oil prices declined through
most of August due to this. The sharp rise at the end of August and into September was partly
a result of gains in some equity markets around the world, but also demonstrates high market
volatility and uncertainty.
While economic uncertainties are high, there are opportunities too. There are still many
positives to take businesses on the upside. India is expected to get a better rating on the World
Bank’s ‘Ease of Doing Business’ index. India is currently ranked 142 among 189 nations. Now,
states are also being ranked on initiatives taken to bring about ease of doing business.
The government has taken a series of steps to improve business environment that include
having a timeline for clearance of applications, de-licensing the manufacturing of many defense
products and introduction of e-Biz projects for single window clearance.
Make in India is being pushed aggressively by the government and completes a year of being
launched. While Lenovo and Xiaomi have both started manufacturing smart phones in India,
Foxconn plans to open 10 to 12 factories here. Auto companies like Toyota and General Motors
have unveiled plans of huge investments over the next few years creating millions of jobs.
Amid the global economy witnessing mixed trends, India has been growing at 7%, with a little
help from the declining oil prices, while the outlook for China continues to deteriorate.
Indian economy is full of potential and with the festive season upon us, we as business
custodians should continue working around current challenges and innovating.
Season’s greetings and best wishes!
Anshuman Singh
Managing Director & CEO
Future Supply Chain Solutions Ltd.
md@futuresupplychains.com
The Analyst • October 2015 | 03
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'PRESSURE'
TACTICS
Leadership Series
With such an impressive branding and
marketing strategy, Prestige has been
one of the most sought after kitchen
appliance company in India. Who do
you give the credit to?
I think it’s about the basic culture of
the company, which strongly believes in
providing value and building trust with
the consumer. There is a very strong
emphasis on ethical practices. There is
also a lot of consistency in the approach
to the way we do things. We constantly
search for new consumer insights and build
solutions around these insights. There is
a consistency with which we approach
marketing and advertising. We constantly
invest in advertising and significantly out
spend all our competitors. We strive to
be close to our customers and have our
own highly successful exclusive chain of
franchisee outlets across the country. The
consumer comes first for us always.
According to you, how do you see
the dynamics of consumer appliance
shaping up in times to come?
The market for pressure cookers is shared
amongst organised national branded
players, regional players and unorganised
players. Over the years, the share of the
unorganised players has been gradually
coming down as there has been a shift
in the consumer preference to reliable
branded players. The market for organised
brands is estimated at about 60% of the
total market. The share of unorganised
players is greater for non-stick cookware
as compared to pressure cookers. For the
rest of the product categories, the market
structure is fragmented and the share &
the role of regional brands and unorganised
players continues to be significant.
The appliance category is also witnessing
entry of quite a few players – regional,
national as well as global players – who
have brand strength mostly in non-kitchen
appliance business or brands outside India
but not exposed to India.
Having said that, we believe in four
large themes that will shape this industry
– health, time saving, convenience and
modernity. These will be the cornerstones
of growth moving ahead.
Your underlying vision has been to
provide quality consumer products at
affordable prices. How do you plan to
achieve that?
TTK Prestige operates on its core
strengths – of brand, innovation, design,
manufacturing, distribution, sourcing and
service capabilities; the vision of ‘A Prestige
in every Indian kitchen’; and the mission
of ‘Quality products at affordable prices’.
We will strive towards achieving this very
objective in the years to come as well.
These strengths and vision have helped
us to broad base our product category,
consumer base and geographical coverage.
Continuous interaction with the ultimate
user of the product has been helping us
in identifying the pain points and offering
solutions in the form of innovative products,
concepts and consumer offers of bundled
HOME APPLIANCES
products for a holistic use. This focus helps
us to create opportunities even in the times
of depressed consumer sentiments.
We believe that our brand is a mass
premium brand. While we may command
a premium, we constantly differentiate
and innovate to give tangible value to the
customer. We see sufficient headroom for
growth in our traditional product categories
– pressure cookers and cookware driven by
introduction of several new models with
value added features. Similarly, there lies
greater opportunity in value added gas
stoves and induction cook tops. As always,
a whole range of innovative assorted
products relevant to kitchen provides scope
for significant value addition to top line as
well as profits.
Constant innovation and consumer
proximity have been one of the
biggest reasons behind Prestige
success. Kindly elaborate.
Our 570 stores are a wealth of consumers’
information. They act as listening posts
for us. In addition, we constantly action
multiple consumer surveys on customers
on their current lifestyles, what they value,
what their pain points are and what their
aspirations are. This translates to directions
for new products. We bring out at least 7080 new products every year. This constantly
gives something to speak of news value
to the customer. We also engage with the
customers on social media and also through
nearly 1000 consumer contact programmes
across the country.
04 | The Analyst • October 2015
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Known for the iconic and a very impressive message, ‘Jo biwi se kare
pyaar, woh Prestige se kaise kare inkaar’, TTK Prestige has touched the
right cord to gain major market share. With a slew of innovative and
sustainable offerings, the company is poised to create a benchmark
in the kitchen appliances category. The Managing Director of TTK
Prestige, Mr. Chandru Kalro, carries the legacy forward with his
strong business acumen and hands-on experience of operating in
this segment for more than three decades. Being simple and downto-earth to the core, he follows a people first approach be it for its
customers or employees, reports Prerna Lodaya.
The Analyst • October 2015 | 05
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Leadership Series
In terms of categories, there are several
initiatives that we have taken in the last
few months; one is that we have refreshed
our existing range of pressure cookers
completely with a new handle system, so
the whole system has been overhauled.
In terms of new products, we are also
constantly trying to segment each category
so that we are able to attract different price
points and different kinds of customers.
Recently we have launched the new
Signature Series Cookware.
Now this is a full range of 11 SKUs that
we have just put in place. These are hard
anodised cookware with non-stick… and
it is probably the most durable non-stick
in the market today. That apart, in the
appliance segment, we have been again
segmenting each category; for example, in
gas stoves, we have launched a high-end
gas stove, which we call the Hob-Tops,
which is India’s first convertible gas stove
that can either be used as a cooktop or as a
built-in Hob-Top, and that has led to serious
upward movement in the model mix and
the price realisation.
At the same time, in induction cooktops,
a category where most of our other peer
groups are actually dropping in volumes,
we have launched several new models
at entry price points; in terms of volume,
we have grown significantly and definitely
in terms of market share. Rice cooker is a
similar story. We have also done a lot of
things to enhance our presence in the builtin appliances especially in kitchen hoods,
because these are high value categories. So,
actually it is all about straggling different
price points and making sure the brand
extends as much as possible.
What’s your strategy in place to beat
the competition?
Our strategy revolves around innovation,
distribution, emotional connect and
consistency of delivery on the brand
promise. Competition for us are our drivers.
There are many but none as completely
focussed on the kitchen as we are.
Please explain to
distribution strategy.
us
on
your
We would like to be available wherever our
customer base is. Therefore, we have built
the widest multichannel distribution in this
industry. We have also created new channels
for ourselves like the LPG distribution for
example. When we suggested that an
LPG distributor could also retail pressure
cookers, no one believed us. We thought
they were the only set of people who had
a monthly access directly into the kitchen.
We are today present in all retail formats be
it B2B, online, home shopping, and so on.
We have a huge loyalty programme for
dealers, which we implement on a year-onyear basis. The innovative feature of this is
the kind of fellowship we promote and also
Your leadership style
I believe that approachability and
the ability to listen is my strength.
I therefore like to give my team
members and colleagues the platform
to engage, collaborate & excel and
therefore keep themselves motivated.
Keeping employees motivated
You should recognise and appreciate
good work done by employees to
keep them motivated and constantly
deliver better than the best. Having
said that, you also need to guide them
when they need your experience and
expertise.
Your advice to new age
entrepreneurs
Believe in yourself and build business
as if you would want to own it for a
lifetime. These days where valuations
sky rocket and plummet also quickly,
one needs to stay committed. Also, in
a fast changing world, staying relevant
is crucial and therefore one must
possess the ability to continuously
reinvent the wheels of success. Don’t
wait for a slowdown to work on it.
involve their families. We have constant
planning meetings with other channels
like the modern format and build business
plans for them based on our new plans well
in advance. While this does not sound so
innovative, the fact that we create newer
opportunities and co-opting their plans
for the year makes the partnerships very
strong.
The regular sales channel is an ongoing
effort to improve distribution, not only
in terms of the traditional trade, there
has been a lot of churn and a lot of new
HOME APPLIANCES
then actually selling them in rural markets.
So these are some of the efforts we have
been taking in improving distribution.
Going omni-channel
Until now in the e-commerce space,
there are two models, one is a buy-sell
model with the portal, and the other is
the marketplace model. The marketplace
model is where our own retailers or
distributors go and register themselves as
resellers on the marketplace and then they
sell. That is something that is largely not in
our control and with the initial predatory
pricing policy that the e-commerce price
had, we were finding it difficult to manage
the pricing. So as a matter of strategy, we
did two things: one is that we were trying
to say that we need to have the full range
available online, which normally is available
only on our e-commerce-enabled website;
the second was to make sure that we have
a benchmark pricing that we can establish
as a guide so that the channel conflict is
minimised.
Now, as a matter of strategy, the major
portals are also trying to minimise their
losses. So they are also moving to the
marketplace model rather than a buy-sell
model. Given this trend what we are trying
to do is register ourselves as resellers or
sellers on the portals. So we have managed
to do that. The second aspect of our
strategy clearly was to have a fulfillment
capability for e-commerce, which is a B2C
capability rather than B2B capability. So
in that process we have already opened
our first fulfillment centre at Hosur, which
is now able to cater to a significant traffic
of e-commerce customers. We are of
course on the way to establish more
fulfillment centres in the other zones, in
the North, East, and West, which will bring
We bring out at least 70-80 new products every year. This
constantly gives something to speak of news value to the customer.
We also engage with the customers on social media and also through
nearly 1000 consumer contact programmes.
opportunities that have come up. In spite
of very difficult conditions, we have been
able to register growth in top line primarily
because we have added to the portfolio of
channels, for example, television shopping
as a key channel; we have added online
distribution as a key effort; we have made
sure that our appliances are in more and
more large format outlets. Aside of that
we have tried our best to make our own
e-commerce quite significant. So in terms
of distribution, it is not just about more
outlets in the traditional trade, but also
making sure that we are present across
channels. Last year, we have added NGOs in
our distribution organisation who work in
rural India, who are buying our products and
down logistics cost, and therefore, our
realisations get better. So, this is largely on
e-commerce.
It is clearly a sunrise area and a growth
area for us, and we probably want to be the
earliest movers in this area in our industry
at least. We have also tied up with India
Post, which means that we can now supply
to any pin code in this country.
How do you see the role of crucial
supply chain in your line of business?
This is becoming increasing important
given the changing dynamics of purchase
behaviour. We are making several changes
in performance metrics by re-evaluating our
current capabilities and making them future
06 | The Analyst • October 2015
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15/09/2015 08:01:29 AM
Leadership Series
ready. I always believe in every problem
that I see, there is a hidden opportunity and
supply chain can in future provide a serious
competitive edge. Going forward, in light of
GST probably going through, there is a lot
of work that needs to be done in this area
from a supply chain perspective and also
from a taxation perspective.
After-sales service has been one of the
most critical aspects of your business.
How do you manage that?
We have created a huge bank of 240
service centres across the country with a
robust CRM system. The customer service
is of a huge priority at my level since we
owe our existence and growth to satisfied
customers. There is a daily dashboard
on this at all levels in sales, service and
head office that is monitored. While we
are considered to be quite good, I believe
that there is always room to move from
satisfaction to delight and this is what we
are currently focussed on.
We are continuing the process of
establishing a dedicated service network
under the name and style ‘Prestige Smart
Kitchen (PSK)’ with modern and customer
friendly ambience. In the continuous
journey in the direction of ‘Best in class’
after-sales service, we have further
strengthened call centre operations, with
considerable investment. This will enable
us to speed up our servicing process, gather
information on product problems, which
will go a long way to improve our quality
and bring new variants on a continuous
basis. A strong network of service centres
can aid growth in sale of spares.
Kindly enlighten us on your growth
plans for future.
We are currently in a phase to consolidate
our retail network, PSKs to be precise, to
Forecasts on the GDP Growth of over
7% and the growth in private consumption
expenditure of 12% augur well for
our company’s growth plans. We are
banking on our new brand and product
strategy including tapping some export
opportunities to get back to the improved
growth trajectory and any revival in the
economy, in general, and consumer
sentiment, in particular, will add strength to
Supply chain can in future provide a serious competitive edge. Going
forward, in light of GST probably going through, there is a lot of work
that needs to be done in this area from a supply chain perspective and
also from a taxation perspective.
make sure that we are able to increase the
throughput per store and we are focusing
more on same store growth rather than
new store additions. We are now having
570 stores across 300 plus towns in this
country. There is obviously scope for
more stores, but our focus at this point in
time is to make sure that our same-store
growth is high, having a very profitable
growing channel will automatically make
acquisitions much easier. Also, since the
Prestige Smart Kitchen really is a mood
builder and a lead indicator for retail, our
focus is to ensure that branded retail grows
faster. Going forward, for this year, we will
follow the same strategy.
our company’s plans.
We at TTK Prestige are a dynamic
company that wants to stay ahead of the
curve to be relevant to today’s customers.
We are therefore highly focussed on
innovating every activity and stay flexible.
We would like to continue to lead growths
in our industry.
Mr. Chandru Kalro is an experienced and
qualified engineer who has been with
Prestige since 1986 with a total work
experience of over three decades spanning
sales, marketing, corporate planning and
strategy, alliances and sourcing.
The Analyst • October 2015 | 07
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CEO ROUNDTABLE
BRICK
MEETS
CLICK
Natasha Tuli, Co-founder & CEO, Soulflower
Vivek Biyani, Director, Big Bazaar Direct
Abhishek Lal, e-commerce Director, Adidas Group India
08 | The Analyst • October 2015
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CEO ROUNDTABLE
In its simplistic term, an omni-channel
strategy is one that provides a seamless
and consistent shopping experience across
different channels and devices. For the
strategy to be successful, the retailer must
be present across channels. The key here
lies in understanding consumers’ purchase
behaviour and act accordingly. Let’s take
a look at what practitioners have to say on
their omni-channel strategy…
What significant advantages does
omni-channel hold for your line of
business?
Vivek Biyani, Director, Big Bazaar Direct:
Traditional marketing is quickly shifting to
digital channels to capitalise on the ‘Power
of the People’ phenomenon to displace
brand-centric strategies in favour of buyerdriven everything. This means the onus is on
companies to provide a digital experience
that powerfully delivers on their customer’s
needs.
We have been at the forefront in adopting
innovative techno-creative solutions that
meet the evolving taste and preferences of
consumers. I believe customers will exist on
multiple shopping channels. Even before
a customer buys online, many customers
are researching and making their buying
decisions at physical stores and vice versa.
And omni-channel allows retailers to
seamlessly integrate the best of both digital
shopping round the clock for various diverse
categories which cater to their ever changing
needs. Going forward, no consumer will
be shopping through any single channel.
Therefore, it has become imperative for
retailers to have presence across platforms
and cater to the needs and preferences at
every possible shopping channel.
Also, Omnichannel retailers will have to
imagine various distinct ways of wowing
each target segment. Some segments can
be served much the way they were in the
past. Others will require more imagination
and innovation. This will help them to stay
connected with the changing preferences of
the customers.
Abhishek Lal, e-commerce Director, Adidas
Group India: Our consumers today want
to connect with a brand who is omnipresent be it physical store, online, mobile,
etc. If our consumers are across multiple
platforms, multiple media & channels, so
it makes sense for the brand to be present
everywhere. With Adidas & Reebok having
750 stores across the country, consumers
are looking for higher engagement even in
the stores. It is about wherever they are,
however they want to connect with the
brand, we should be there to provide worldclass shopping experience.
Natasha Tuli, Co-founder & CEO, Soulflower:
Omni channel approach will help a brand
communicate more effectively. Product
Omni-channel retailing is here to stay & how! Harnessing the best
of all the worlds ie brick & mortar shops, digital media, television
as well mobile, omni-channel retailing can greatly co-exist. This
roundtable with retail stalwarts has opened up many aspects that
co-create rather than compete to offer the best of omni-channel
strategy, reports Prerna Lodaya.
and physical worlds at each step of the
customer experience. It gives an optimal,
consistent user experience in-store, on the
web, on mobile devices or any other digital
platform. Thus for an omni-channel retailer,
websites and mobile devices aren’t just
e-commerce ordering vehicles, they are
front doors to the stores. Retail outlets aren’t
just showrooms, they are digitally-enabled
sites, purchase points, instantaneous pickup
places, help desks, shipping centers, and
return locations.
The shopping experience includes not just
visiting the store but searching for various
vendors, comparing prices, quick and hasslefree returns, and so on. Customers are
visibility across various retail channels
will ensure conversion in purchase. Stock
management will be more simplified and
errors in production will be reduced.
What are your strategies to go omni
channel?
Abhishek Lal: We are rolling out omnichannel initiative to about 200 stores in
the country in this year. We have already
started doing that in about 35 stores. The
idea is that when a consumer walks in to our
store, he should be able to find what he is
looking for. If a particular size is unavailable,
they can always browse through in-store
tablet and get it delivered at their doorstep.
As a retailer, one has to decide
where he wants to really
focus on – a large offline retail
store, an online channel or an
amalgamation of online and
offline retail space. Consumer
durables space will have a larger
online presence as compared to
other products but majority of the
business will come through offline
channel. Globally, digital retailing
is probably headed toward 1520% of total sales, though the
proportion will vary significantly
by sector.
- Vivek Biyani,
Director, Big Bazaar Direct
Our strategy is to make everything available
to our customers in each and every store.
This would result in a huge width of choice
for the consumer. From a business point of
view, this initiative should result in approx.
15% additional business for the stores.
Natasha Tuli: Currently we follow a multi
channel strategy. We are very keen on going
omni-channel. We are looking to integrate
our existing channels to ensure seamless
transfer of stock and customer experience.
Our website needs to be more responsive
for mobile as well as desktop. There has
been an exponential increase in traffic from
mobile devices. So targeting digital customer
will help us to unleash the true benefits of
being omni –channel.
How do you plan to attain seamless
cross-channel customer experience?
Abhishek Lal: In terms of seamlessness,
it’s the same product availability across all
these channels. There is 100% price parity.
Consumers also have differential behaviour.
Someone would want to go online and then
purchase it at the store. Someone would
like to try it out and then purchase it online.
So the whole system is interlinked. We have
in-house technology developed to attain
the same. He will get the same product,
same price everywhere.
Natasha Tuli: As we are retailing through
multiple channels, seamless cross-channel
customer experience would enhance
customer connect. There are various tools
for individual channel so that maximum
product info can be shared with the
customer irrespective of the channel he/
she is shopping from. To enhance shopping
experience, we use product calendar,
brochure, in-store branding, etc. For online
The Analyst • October 2015 | 09
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CEO ROUNDTABLE
channel, product info, how to use pictures,
blogs, and social media engagement are the
tools that we are using for seamless crosschannel experience.
Partners in progress
Abhishek Lal: Omni-channel is making
distributors, dealers and retailers into
e-tailers. This is a big jump for retailers
to come online and sell their products
online and reach out to a huge market.
We don’t believe in any conflict between
any of the channels. These are actually
complimenting each other. As far as
partners are concerned, as we have
mentioned earlier, we maintain 100% price
parity. We currently have tie-up only with
Flipkart, Myntra, Amazon & Jabong. We
work very closely with all of them.
assistance from both our online and offline
partners to effectively implement omnichannel strategy.
Supply chain is going to be one of the
most deciding factors in harnessing
multi-channel benefits. How do you
plan to make sure that you are able
to get a seamless supply chain all
throughout?
Vivek Biyani: Supply chain is one of the
critical components of building the most
successful e-commerce business. Ultimately
this is one of the biggest cost parameters
that a retailer has to incur. I believe lot of
innovations can happen in the last mile
delivery spectrum. Going forward, there
will be many organised players in this space,
which will ultimately enhance supply chain
What do you think can be the
challenges and obstacles in going omni
channel?
Vivek Biyani: Challenges come in every
business; physical channel has its own set of
challenges. One has to build capabilities to
win over those challenges. We are constantly
evolving and building capabilities around
last mile fulfillment. We are focussing on
building capabilities on how to get our
stores to process orders that are that coming
from other channels as well. Retail stores to
some extent have limitations of stocking the
extensive range and quantity of assortment
due to space constraints. However, if we can
integrate digital and physical platforms, then
the customers can witness a much larger
catalogue. Many such opportunities exist
when you service customers across channels
in terms of assortment, convenience, etc.
From consumers’ perspective, advantages
that omni-channel retailing offer are far
more than any one medium be it physical,
online, etc.
Abhishek Lal: According to me, there can be
two major challenges. One is the availability
of the internet across the country. There are
challenges in terms of bandwidth, speed in
tier III & IV towns. Second is the logistics
availability. Speed of business is not the
same as it is in the metro cities. Having said
that, there is no dearth of demand in tier III
cities. So, it is a matter of time when all the
challenges turn into opportunities.
Natasha Tuli: Major challenges in going
omni-channel is integrating all data into one
place and using it effectively to gain useful
insights from them. Such integration would
require huge investment in technology
and infrastructure. A brand like us would
take a few more years to omni-channel
independently thus, we would require
It’s about convergence and
about streamlining various cross
channels benefits. Pure play
e-commerce companies have a
way of evolving very fast. It’s a
win-win for both. From the brands’
standpoint, we have to be present
across all the channels. It’s the
next big wave in India.
- Abhishek Lal,
e-commerce Director, Adidas Group India
efficiency. For us, it’s about connecting the
last mile customers because we have a fullfledged supply chain serving across 100
cities of India.
Abhishek Lal: We have tied up with industry
leaders in supply chain who are specialised
in e-commerce and direct to customer
delivery. We have got in-house ERP system
to get real-time information between
consumers, supply chain partners and
partner teams managing e-commerce.
Natasha Tuli: Agile and responsive supply
chain is certainly a differentiating factor for
a sustainable business. We are currently
focussing on integrating data from channel/
supplier, which will help us out in a big way
to predict our sales and accordingly forecast
our inventory well in advance. We have been
implementing best practices in market (JIT,
Theory of Constraints) and constantly strive
to implement new practices, which will
make our business more profitable.
What are your views on the deep
discount model? Is it sustainable?
Vivek Biyani: Deep discount models do not
look sustainable in the long run because for
how long can you run your business by selling
goods at price lower than the cost price.
Currently, the e-commerce companies are
in customer acquisition phase. Therefore,
they are absorbing this cost to give a firsthand shopping experience to the customers.
However, after a while, these companies will
grow out of the acquisition phase and that’s
the time when their models will evolve.
I believe after a while, everyone would
have carved an identity for themselves
with their unique value proposition.
E-commerce or retail shops will have their
own set of customers and it’s not going to
perish soon. As a retailer, one has to decide
where he wants to really focus on – a large
offline retail store, an online channel or an
amalgamation of online and offline retail
space. Consumer durables space will have
a larger online presence as compared to
other products but majority of the business
will come through offline channel. Globally,
digital retailing is probably headed toward
15-20% of total sales, though the proportion
will vary significantly by sector.
Abhishek Lal: We completely believe that
deep discount model is not sustainable.
Though this is not so much applicable to us,
but we make sure that we are connected
with our partners to resolve such issues.
I think websites have their private labels,
which they operate on a very high margin.
That’s what becomes their weapon to
lure customers online. It’s not a long term
phenomenon and it will not be a big share
of the growth.
Natasha Tuli: With the arrival of e-commerce
platforms in retail, deep discount model
seems to be a rule to customer acquiring
strategy, to thwart competition and
win customer loyalty. But this model is
unsustainable. The idea is to expand user
base, increase volume and make up for the
discounts given. But in reality, it hits the
bottom line of the business as operational
costs remain the same. Even before we
realise, it becomes a vicious business cycle
of losing money/profits.
Your views on omni channel a threat to
pure play e-commerce companies.
Abhishek Lal: I don’t think so because it’s
10 | The Analyst • October 2015
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CEO ROUNDTABLE
general mind-set that whenever there is
something new coming up, people think that
it will root out the conventional way of doing
business. It’s about convergence and about
streamlining various cross channels benefits.
Pure play e-commerce companies have a
way of evolving very fast. It’s a win-win for
both. From the brands’ standpoint, we have
to be present across all the channels. It’s the
next big wave in India.
Natasha Tuli: Providing a seamless customer
experience is major aspect of omni-channel
strategy. As of now, major retail business
like Walmart are still implementing omni
channel, and this is still evolving. Ecommerce
is in growth phase and omni channel is not
a threat for companies who are attracting
huge investment from firms all over the
world. However, the future lies in strategic
partnerships of pure play e-commerce
companies and brick & mortar retail to
Omni channel approach will
help a brand communicate more
effectively. Product visibility
across various retail channels will
ensure conversion in purchase.
Stock management will be more
simplified and errors in production
will be reduced.
- Natasha Tuli,
Co-founder & CEO, Soulflower
ensure seamless experience.
Plans for growth
Abhishek Lal: We already have a first mover
advantage. While lot of brands are talking
about going omni-channel, we have already
done that. We intend to cover all our stores
by 2017. We are training our employees. Yes,
it was a big mind-block among employees
earlier, but when we made them realise
the true benefits, it has become easier for
us now. We had to tell them the consumer
experience that omni-channel will offer. We
did a pilot for quite some time. We have now
evolved and made our standard operating
procedures, our manuals, training, etc. Yes,
there were initial hiccups, but looking at the
bigger picture, things are slowly and surely
settling for good.
Tips to go omni-channel
Natasha Tuli: Integrate data in varied
channels available. Attain support of
various partners involved. Prepare a
strategic partnership between our current
offline and online channels. Mobilise the
in-store experience. Optimise the buying
experience.
The Analyst • October 2015 | 11
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FOOD &
BE ERAGES
Interview
BREWING
SUCCESS
Sustainable development, being at the core of the business strategy, SABMiller India Ltd., believes in
holistic path to progress. An interaction with Mr. Karuna Shankar Pande, Supply Chain Director, SABMiller
India Ltd, unravelled various nitty-gritties that go behind becoming the most admired beverages
company amid stringent norms & complications and the crucial role of supply chain in achieving the set
goal, reports Prerna Lodaya…
H
ow complex is the alcoholic
beverages supply chain?
The alcoholic beverage supply
chain is indeed complex in India. There is
state-based excise regime, which attracts
imports and exports duties for movement
of finished goods from one state to the
other. This means that we need to have
in-state based manufacturing facilities,
which may not have economies of
scale. You cannot have a large in-state
manufacturing facility unless there is
high consumption in that state.
Even though India has tremendous
potential to become the primary source
of agricultural products, unfortunately
due to difficult state of cultivation, lack
of technology, inefficiencies in the supply
chain, we have to import some material
from other countries. The key thing is that
almost two-third of the volume of alcoholic
beverages distribution is rooted through
state-run government corporations; this
not only adds cost but also complications
in delivery and supply chain.
To mitigate these issues, we have
suppliers all across the country who
can deliver the quality and quantity of
material we need for example we have at
least two carton manufacturers located
close to each brewery.
Please tell us about some of your
initiatives to reduce inefficiencies in
supply chain.
We are the first beer company in India
to introduce patented bottles. This has
reduced our dependency on industry
pool of bottle supply, which was erratic
and also the quality of those bottles was
very suboptimal because there was no
one owner of that bottle. I mean anyone
could buy those bottles and use it. We
now have bottles which only SABMiller
can use. We are the first beverage
company in India to deploy a 3PL company
for managing our outbound logistics from
one of our largest breweries. We do take
measures within our control to get robust
demand-supply equation in play.
We do have robust demand & supply
planning system to take care of the
market led volatility in our line of
business. While we strive to improve
our forecast accuracy, through adequate
safety stocks, we do achieve high OTIFF
number which is close to 100%. Then our
Sanjhi Unnati programme has ensured
uninterrupted supply of quality barley,
which is the key input for beer making.
What are the USPs that make SABMiller
one of the customers’ preferred choice?
To give you a brief backgrounder,
SABMiller India is the Indian arm of
SABMiller plc., one of the world's largest
brewers, and is also one of the leading
brewers in India. The company serves the
market with ten breweries across various
states.
We offer our consumers one of the
widest and best known brand portfolios
that meet the taste needs of consumers
in each market. These range from:
• Our Italian super-premium beer brand
Peroni Nastro Azzurro
• Our international Premium Lager beer
Miller High Life and Premium Strong
beer Miller ACE
• Our international Mainstream brand
12 | The Analyst • October 2015
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15/09/2015 08:01:51 AM
Interview
Up, Close and Personal
Sanjhi Unnati involves working closely with Government and
NGOs and the project is targeted at improving the barley supply chain in India.
Foster’s
• Our core domestic Mainstream beer
offering consisting of Haywards 5000,
Knock Out and Royal Challenge
Our brands are available in all standard
packs, as well as in 1 & 1.5 litres pack,
which is unique only to SABMiller. We
have led the innovation agenda in the beer
category in India with the introduction of
PET bottles for beer. We were the first to
introduce thermochromatic labels on our
bottles and cans for Foster’s that change
colour when the beer is at its most
refreshing temperature.
As a responsible business, we work
to brew beers that are local and market
them responsibly to legal-age drinkers.
We have a comprehensive set of policies
and accompanying guidelines to help all
our employees meet our high standards
on creating and marketing our beers.
Maintaining a strong partnership with
dealers is one of the keys to successful
business. What initiatives have been
taken by you in this regard?
Relationship
development
through
advocacy, quality of product with high
freshness index, the right portfolio of the
product to cater to the needs of all, and
most importantly, flawless availability
and visibility are the key drivers of strong
partnership and co-creation of growth
for dealers.
Pls elaborate on the project
‘Sanjhi Unnati’.
SABMiller India envisioned
& initiated ‘Sanjhi Unnati’
–
(Progress
through
Partnership)
programme
in the State of Rajasthan in
2005. Sanjhi Unnati involves
working
closely
with
Government and NGOs and
the project is targeted at improving the
barley supply chain in India. The overall
aim is to secure a long-term reliable
source of locally grown malt-quality
barley and test new strains of barley
that offer better yield and price to the
farmers.
The programme that started in 2005
in one state, with a membership of
1500 farmers, sourcing less than 5% of
SABMiller India’s barley requirement,
has now spread over five States including
Haryana, Uttar Pradesh, Uttrakhand and
Madhya Pradesh, working with about
9500 farmers and sourcing about 65%
of our requirement. The project starts
right from making available quality
seeds to the farmers. We have about 45
agronomists deployed by us who work
in the fields with the farmers. We have
about 40 Sanjhi Unnati centres, where
farmers bring their produce and offer to
us for sale.
You have a widespread presence across
the globe. How different and difficult is
the Indian market?
India is a diverse market with large
demographics, geography, culture and
religion. Market is predominantly a
spirit market. Beer comprises only 5% of
alcoholic beverages consumed in India.
Alcoholic beverage market is highly
regulated by state authorities. It includes
restrictions on the number of outlets
that can sell alcohol in a particular state.
An excellent manager with great
leadership skills, Mr. Karuna Shankar
Pande is known to be a people’s
person. With his go-getter attitude,
he is a motivator and inspires his team
to help achieve their targets leading
to. With excellent problem solving
skills, he is a driver for results with a
vision of ensuring collective wins. He
is an avid sportsman and a complete
cricket buff who loves to watch and
play the game. For him, every day
is a learning process and he keeps
learning from people around him – his
superiors, subordinates, friends and
family members. Let’s get up, close
& personal with such an inspiring
personality…
Mantra for success
I follow team work to the ‘T’ and firmly
believe that Team Work works. For
me involving team in decision making
makes execution that much simpler
and easier.
Your leadership style
I am straightforward, upfront and
someone who believes that every
member of the team is contributing
to the growth and the development of
the organisation. I delegate but keep a
proper review and control mechanism
as well.
Book that you have read recently
I don’t read much but right now I am
reading various books on ‘Vipassana’
by Dr SN Goenka. That has given me
much more insight on my personal self
and has helped me in becoming much
more effective at work as well.
If not in SCM, then where would you
be?
I would be in Healthcare.
We work closely with state governments
to ease such restrictions. Despite
challenges, India remains a large growth
opportunity given its current size and
changing market dynamics.
What global best practices have been
implemented by you as far as supply
chain is concerned?
Two of the most challenging as well as satisfying projects I have ever
executed are Sanjhi Unnati and the introduction of patented bottles.
It never gives me more pleasure than to be at the barley farms to
see smiles on the faces of farmers. Then the patented bottle project
is very innovative because it actually challenged the entire industry
norm.
The Analyst • October 2015 | 13
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FOOD &
BE ERAGES
Interview
moderate and responsible drinker;
yy Reducing waste and carbon emissions;
and
yy Supporting responsible, sustainable
use of land for our crops.
We do not face these issues in isolation,
which is why we refer to them as
shared imperatives. In India, we will
continue to explore innovative local
solutions to shared challenges through
our collaborative initiatives in the
area of water, alcohol and enterprise
development.
We have about 45 agronomists deployed by us
who work in the fields with the farmers.
We are a process driven company.
Currently our procurement function has
globally standardised way of functioning
for both strategic sourcing and supplier
management based on industry best
practices while being tailored to Indian
requirements. We have a unique supplier
base here. There is robust category
planning and execution process including
category strategy. So we have category
strategy which runs upto multiple years,
then there is go-to-market strategy,
supplier award recommendation which
is very transparent combined with
stricter sourcing governance process
to ensure that every rupee spent is
done professionally. Our strong risk and
accreditation process ensures that we
have the best suppliers in the market for
seamless beer manufacturing. We use
best in class tools like ARIBA and SIEVO
to aid us in the journey of procurement
excellence.
Coming to our sales & operations
process, it is completely linked to the
delivery of strategic & financial objective
through operational drivers. We use
the process to shape business decision
making and it’s an ongoing course of
Heritage
SABMiller entered the Indian market
in the year 2000 by acquiring Narang
Breweries and has since acquired
several breweries and brands. The
most notable being its acquisition, in
June 2001, of Mysore Breweries (with
its Knock Out brand) and in May 2003
of Shaw Wallace’s beer brands (Royal
Challenge & Haywards).
action. The business strategy is defined
to an operational level and comparison to
future projections of demand and supply
are routinely used to shape tangible gap
closing initiative and actions. All our key
performance indicator in supply chain
and distribution are benchmarked on
global level.
As far as jobs are concerned, how can
freshers prepare themselves to be a part
of this industry? What would be your
advice to them?
I would like to advise them that
while attributes such as intelligence,
enthusiasm and integrity are vital, we
specifically look for candidates with ‘Can
Do’ attitude with an innovative mind
set to turn things around in challenging
environment.
How poised are you with India growth
story? How can supply chain help in
achieving growth?
India is strategically important in the
whole play of SABMiller globally. We
have a strong innovation pipeline. We
have highly talented workforce and a
strong business culture within SABMiller.
We are the first beverage company in India to deploy a 3PL company
for managing our outbound logistics from one of our largest
breweries. We do take measures within our control to get robust
demand-supply equation in play.
The company has placed major thrust
on sustainability. Can you please share
some examples when it comes to SCM?
Sustainable development is a vital part
of our business strategy and we believe
that our business is not separate from
society, and the success of SABMiller is
inextricably linked to the well-being of
the wider community. We know that by
helping the businesses in our value chains
and their local communities to grow, our
business will grow too. Our sustainable
development ambition is called PROSPER.
As part of Prosper, we have identified
five shared imperatives. Through these
we aim to tackle the five issues which
are most material for our business at
local and international level and which
we seek to address in partnership with
our suppliers, customers, consumers and
communities. These are:
yy Securing shared water resources for
our business and local communities;
yy Accelerating growth & development
through our value chains;
yy Making beer the natural choice for the
We have long-term capacity planning
which is key to capturing the growth
opportunity. We are executing green
field projects as well as increasing third
party manufacturing across India. In
short, we are poised to participate in the
India growth story.
Mr. Karuna Shankar Pande brings
23 years of experience from the
Manufacturing sector. He joined
SABMiller India in 2007 and has
held various important positions in
manufacturing and projects across
India. Prior to joining SABMiller
India, he worked with companies
like ITC Limited, PepsiCo India and
JK Industries. He is a Mechanical
Engineer from NIT, Warangal and has
completed his MBA in operations from
ICFAI University.
14 | The Analyst • October 2015
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COVER STORY
Being nimble footed while expanding
growth horizons is what makes
Mr. Amit Burman, Vice Chairman
Dabur India Ltd & Chairman, Lite
Bite Foods ahead of the pack.
Eyeing opportunities in the highly
unorganised F&B retail space and
striking gold can be only be achieved
by firm determination. His go-getter
attitude and believing in co-workers,
whom he fondly calls co-creators,
are some of the attributes towards
this unparalleled feat. While deeply
engrossed in work, he doesn’t leave
any opportunity to be with his
family and instill good values to the
GenX. Striking a perfect balance
between personal & professional
front, Mr. Burman is here to leave a
lasting impression in the F&B retail
business, explores Prerna Lodaya…
DRIVEN BY
PASSION,
EXCELLED BY
PERFECTION
W
hen you are passionate and extremely determined to realise your
dreams, nobody can stop you from achieving success. Such are the
impressive words of wisdom of Late Mr. GC Burman, which have
always stayed with his son, one of the most influential & iconic
businessman in India, Mr. Amit Burman. Carrying ahead a very strong lineage, Mr.
Burman, has carved a niche for himself in the F&B retail segment with the launch
& expansion of Lite Bite Foods. Let’s hear the success story behind the making of
India’s largest restaurateur, Mr. Amit Burman…
Coming from an iconic brand ‘Dabur’, carrying the legacy ahead is a
daunting task. How have you managed to surpass the expectations?
With such a huge legacy behind you, it’s never easy. People tend to watch every
step you make and are quick to pull you down too. Even when I started out with the
packaged juices venture, it was not an easy task. Almost everyone I had discussed
The Analyst • October 2015 | 15
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COVER STORY
the idea with, tried to discourage me from
venturing into the same. They said the
concept is alien to India; there are too
many neighbourhood juicewallahs and
Indian consumers do not trust packaged
food products.
While deep down I believed that this
was a market waiting to be explored, I was
disheartened. But my father, late Mr. GC
Burman, stood by my side and said, “If you
truly believe in your dreams, no one can
stop it from coming true.” That one line was
inspiration enough.
So, I decided to set up a new company
and launched India’s first packaged fruit
juice brand. Today, Réal & Réal Activ are
household names and control the lion’s
share of the fruit juice market in India. And
this inspirational line from my father has
been with me all through whenever I have
set up new businesses or ventures.
With both Dabur Foods and Lite Bite
Foods, I would attribute my success to
two things: first, a highly motivated team
who stood by me through thick & thin and
believed in my dream and went all out to
ensure it was a success. And second, to the
Dabur DNA which taught me to always listen
to our consumers and be nimble-footed
enough to adapt to their needs. To cite
an example, we realised that unlike in the
Western world, Indian consumers like their
juices sweetened and we quickly adapted
With more than 100 operational outlets, Lite Bite Foods currently covers more than
1.5 million sqft of retail space.
host of brands and products offering the
benefits of nature and the age-old science
of Ayurveda in modern, convenient and
ready-to-use formats. All through our
journey, Nature and Ayurveda have been
the strong connecting threads across our
product range.
Dabur, as a brand and entity, has always
been popular and well recognised. Over
time, we felt that our products and brands
have to become more cohesive and in sync
with the modern-day consumer. So, we
have been continuously investing in brand
rejuvenation – a prime reason why nearly-
Like my father said: ‘If you truly believe in your dreams, no one can
stop it from coming true’. Believe in your ideas, have faith in your
work, and learn to work with your team. Make your team a part of
your vision and believe in them, and you will taste success.
ourselves to this need and introduced
the sweetened range of fruit juices. Also,
we have been regularly introducing new
variants and mixes to meet the growing
need and aspirations of our consumers.
Today, we have the largest range of variants
in packaged fruit juices in India.
Dabur’s key strength lies in rural
market penetration. What are the
factors that has made it people’s
brand?
From its humble beginnings in the by
lanes of Calcutta, Dabur India Ltd has
come a long way today to become an over
$1-Billion FMCG firm – the largest Indiaborn consumer products maker – with a
host of big ticket products and brands in
its portfolio. Very few Indian companies
have survived the vagaries of time, fewer
still have been able to withstand the
onslaught of deep-pocketed multinational
giants post-liberalisation; and probably no
one has been able to adapt and transform
itself as well as Dabur, during its 130-yearlong existence.
Dabur has carved a niche for itself
with the successful introduction of a
a-Century-old brand continues to appeal to
the modern-day consumer even today. Be it
through constant upgradation of products
& packaging, or by virtue of offering the
benefits of nature in newer, modern
formats, we have always been at the
forefront of innovation. Another example
of our being in line – and even ahead of
the times was the introduction of packaged
fruit juices. We pioneered the concept in
India with Réal, way back in 1997.
We have been innovators not only in
product development but also how we
communicate with our consumers. We
were among the first companies to initiate
wall painting as a medium of reaching out
to our consumers. We were among the
first advertisers on television and satellite
television. Dabur was among the first
companies to tap rural melas and haats.
And all this while, we have also been
investing in expanding our distribution
footprint across rural and urban markets to
take our products closer to our consumers.
In this stiff competition, what do you
think are the USPs that set Dabur
ahead of its competitors?
Dabur today has a diverse portfolio, ranging
from health supplements to hair care and
packaged juices to home care and skin care.
But the common thread that binds the
entire portfolio is Nature & Health.
Dabur maintains its edge of competitors
with its herbal heritage. We remain true to
our heritage and are continuously working
to update our portfolio in line with changing
consumer demands and aspirations. In fact,
Dabur has been regularly updating and
upgrading its core FMCG portfolio, while
introducing new brands that meet the
growing aspirations of the Indian consumer.
Dabur has highly differentiated brands
in the market, and all its products are based
on natural and Ayurvedic ingredients. While
a lot of companies today offer Ayurvedic
and herbal products, Dabur enjoys the
consumer’s trust because of its herbal
heritage. Consumers feel that if a product
comes from the House of Dabur, it is truly
natural.
Health, as I mentioned, is the other
strong USP of Dabur products. All our
products are sworn to the Dabur motto of
being dedicated to the health & well-being
to every household. Even with our beauty
care products, it’s not about superficial
beauty, we offer health beauty or beauty
from within.
What’s more, we are always in line
with consumer trends. As a company,
Dabur is highly connected to its consumer
and develops products that meet their
needs and requirements. A high degree of
consumer insight goes into development of
each product.
Dabur India also has a strong in-house
research wing that follows a ‘bush-tobrand’ approach. We have our in-house
nursery, which grows several rare herbs
that go into various products. This indepth knowledge about nature and natural
ingredients is one of our big strengths in the
market. This research wing also undertakes
detailed tests on individual ingredients and
products to ensure that the final product
meets customer needs and aspirations.
16 | The Analyst • October 2015
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COVER STORY
Also, Dabur India has a highly developed
sales and distribution network with a
presence in even the smallest of markets.
Dabur’s distribution network covers
over 5.3 million retail outlets, with a high
penetration in both urban and rural areas.
You have a very impressive story
behind becoming one of India’s largest
restaurateurs. Kindly share with us.
Food has always been an area close to my
heart. I don’t claim to be a good cook but I
am a foodie at heart and am always ready
to try out new concepts and cuisines.
When I came back to India after
studying abroad, the one thing that I
missed most on my breakfast table was
packaged fruit juice. It was pretty much a
part of my staple diet during my college
days, but that concept was still alien to
India. Whatever little was available in some
select stores in India, were imported stuff
and mostly laden with preservatives. That’s
when I saw an opportunity and decided to
fill this need gap with India’s first packaged
fruit juice with no preservatives under
the brand Réal, way back in 1997. After
establishing Réal & Réal Activ as the mostpreferred packaged fruit juice brands in the
country, when I set out to look for newer
challenges, the food retail sector was the
one that caught my attention.
I saw a significant opportunity in the
F&B services category of organised retail.
While there were a lot of big business
houses looking at organised retail as a
market, everybody seemed to have missed
sighting the opportunity that F&B retail
offered. This sub-segment shares many of
the same high-growth attractive aspects
of other organised retail segments, but is
far more fragmented with mom-and-pop
stores dominating this landscape. While
there are a number of new entrants in
this area, the opportunity to create a
dominant pan-India position in this niche
still exists. And as I mentioned, a number
of larger players entering this space
were coming from broader retail and/or
property development backgrounds and
we feel our being a pure-play and focussed
F&B operator will provide us a significant
advantage. As I went along the journey,
I came across a number of like-minded
partners who shared the same vision, so we
agreed to pool in our resources and rapidly
grow the enterprise. That’s how Lite Bite
Foods was born.
Our intention, when we set up Lite Bite
Foods, was to become a major player in
the F&B retail market, covering all types of
cuisines and needs of the Indian consumer.
And the best way to do this was to have
a mix of franchised brands and some inhouse brands.
Our portfolio of formats comprise both
leading international as well as in-house
concepts and brands that will focus on
Fresc Co, CP
delivering world-class food & beverage
experiences at a far superior value–price
proposition than existing offerings.
So, we identified the top and mostpreferred cuisines by Indians and went
about establishing presence with brands
in each of these verticals. And it gives me
great pleasure to see that we have today
emerged as amongst the few pure-play
food retail brand in India and are now even
taking Indian cuisine overseas. We have
now established presence in the overseas
markets with one of brands, Punjab Grill,
setting up an outlet in Singapore. I have also
acquired a fine-dining Italian restaurant in
have franchises of established QSR chains
such as 4700 B.C., KFC, Pizza Hut, Belgian
Fries, Krispy Kreme and Café Delhites at
airport terminals. In addition to this, we
are planning to open outlets of Burger
King. This is the segment where we feel
that there is need to look deeper. In the
next financial year, 35 % of our overall
operations will feature QSR segment.
How do you see the dynamics of food
business and retail sector specifically
shaping up going ahead?
With the changing mindset of the people,
eating out has become a part of present
If you have a great idea, just move forward, get your business plan
and strategies in place. And more importantly, never lose sight
of your consumers and their needs. This will ensure that you will
never fail. Remember that success is not the key to happiness, but
happiness is the key to success. So, enjoy what you do.
London -- Scalini, a privately-held hugely
popular dining destination. This acquisition
marks my entry into the F&B retail market
in the UK.
With LBF, you plan to enter extensively
into QSRs. What are your strategies in
place for that?
India’s quick-service restaurant segment is
expected to grow by 26% and is expected
reach Rs117 bn by 2017. This is driven
by the arrival of international chains
and strengthening of local players in the
market. The growing demand of QSRs
can be owed to the increasing need of
convenience, increased appetite, a liking
for international food and increase in
annual average spending.
At Lite Bite Foods, we have Baker
Street, Street Food by Punjab Grill,
Zambar Express in the segments and
day culture. More and more people prefer
to dine out regularly, especially in the
metros, mini-metros and Tier I cities; driven
by rise in income and increasing number of
nuclear families and working women/men.
Interestingly, there has also been a gradual
shift towards customer engagement with
the dining spaces and Cafés offering live
music or games, Sports bars, bookstore
cafés etc.
Also, the growth of dining options at
concourses around the world has made it
easier for travelers to enjoy a few hours at
the airport or railways. World class airport
terminals across the Indian metros have
now caught up with the global trend of
emerging as mega retail hubs.
With more than 100 operational outlets,
Lite Bite Foods currently covers more than
1.5 million sqft of retail space. We have a
very strong presence in malls, airports,
The Analyst • October 2015 | 17
The Analyst_Oct2015.indb 17
15/09/2015 08:02:08 AM
COVER STORY
high streets, multiplexes, office complexes,
hotels and other high footfall locations.
How do you manage juggling between
two super brands? Which one is more
challenging?
I am associated with Dabur only in a nonexecutive capacity and I spend most of my
time with Lite Bite Foods. To give you a
brief history, way back in 1998, the Burman
family decided to separate ownership from
management and handed over day-to-day
management of Dabur India Ltd to a team
of professionals.
There was a growing realisation within
the Burman family that as the company
expands, there may not be enough space
within the flagship company for the new
generation. So, the new generation was
encouraged to set up independent business
ventures outside Dabur with the elders
offering complete support.
In 1998, the Burman family handed
over management of the company to a
professional CEO and limited their role
to strategic inputs at the Board level.
The decision was taken in response to
the changing business dynamics and to
inculcate a spirit of corporate governance
within Dabur India. Today, the Burman
family members do not hold any executive
position in Dabur India Ltd. Since the
Burman family members are not involved
in day-to-day running of Dabur India Ltd,
they do not draw salaries from Dabur
Super 6 with Mr. Burman
What’s your passion?
Creating new businesses
Your mentor…
My father
The book that has inspired you the
most
Who Moved My Cheese
Your favourite travel destination
Florence
What does success mean to you?
Achieving and surpassing your goals
Your favourite restaurants
Scalini, Punjab Grill, Le Petit Maison,
Zuma...
we have the largest range of variants in
packaged fruit juices in India.
What are the ingredients to gain
success in the food retail business?
Why restrict the success mantra to just food
retail business? I think the success mantra
would be the same for any business. I try to
keep my ear to the ground and understand
what is happening in the market and what
the consumer needs. That apart, business
ethics and fundamental discipline is what I
feel are the key to success in any business
venture.
So, if you were to ask me what the
success mantra is, I would say first identify
your niche. If you have a great idea, just
We were among the first companies to initiate wall painting as a
medium of reaching out to our consumers. We were among the first
advertisers on television and satellite television. Dabur was among
the first companies to tap rural melas and haats.
India Ltd. The Burman family has taken a
conscious decision to rather invest their
personal wealth in business ventures
outside Dabur India Ltd and create mega
entities or ventures in various sectors.
This gives the family members the
opportunity to be entrepreneurs and look
for different avenues.
You have been a part of various global
organisations. Kindly share with us
some of the experiences you learnt on
the job.
The launch of Réal taught me to be nimblefooted and how to quickly respond to the
consumer’s needs and tastes. To cite an
example, soon after the lunch of Réal,
we realised that unlike in the Western
world, Indian consumers like their juices
sweetened. So, we quickly adapted
ourselves to this need and introduced the
sweetened range of fruit juices, which went
on to become a huge success. We have
been regularly introducing new variants
and mixes to meet the growing need
and aspirations of our consumers. Today,
move forward, get your business plan
and strategies in place. You should listen
to everyone, take everyone’s advice, but
do what you feel is right for the business.
And more importantly, never lose sight of
your consumers and their needs. This will
ensure that you will never fail. But above
all, remember that success is not the key
to happiness, but happiness is the key to
success. So, enjoy what you do.
How do you envisage Indian economy
in the years to come?
The Indian economy is in a relatively
brighter spot in the global context as
compared to where it was nearly a year
ago. I am confident that the economy is
poised for good growth in years to come.
go a long way in encouraging growth
of business, push investment flows and
accelerate overall economic growth, which
will help boost long-term consumerism.
As a successful entrepreneur, how
would you like to contribute to the
Indian growth story?
We are doing our bit by taking the brand
India to the overseas markets, both with
our FMCG business and now with Lite Bite
Foods. Even within the country, our rapid
expansion has been helping create jobs. We
have also been contributing towards social
upliftment with our foundation SUNDESH.
At Dabur, we believe that an
organisation’s true worth lies beyond
its business, and is best reflected by the
service it renders to the community and the
society. Businesses have a responsibility to
subserve larger societal goals as they have
the ability to contribute significantly and
impactfully to sustainable and inclusive
development. In fact, we have been
working towards community development
since 1994, long before the CSR norms
came into place.
What are your expansion plans?
We have an aggressive expansion plan in
place and we are looking forward to set
up a number of restaurants in multiple
formats. We are also planning to increase
the number of outlets of our signature
brands – Punjab Grill, Zambar and Fresc Co
and The Artful Baker in the domestic and
international market in the next few years.
Lite Bite Foods will be launching Punjab
Grill in Chennai, Jeddah, Dubai, Abu Dhabi,
Washington and Bangkok and a premium
dining brand ‘American Tandoor’,
which will serve Indian cuisine with an
American twist.
We recently entered in a Joint Venture
with HMSHost, the world’s largest
provider of food and beverage services
for at travel retail destinations like airport,
train stations and highways. Lite Bite
Foods has also tied up with IRCTC (The
Indian Railway Catering and Tourism
Corporation) to offer high quality cuisines
at a budget price to commuters travelling
by Indian Railways. The tie-up is a part of
IRCTC’s endeavour to offer varied cuisines
to passengers to choose from its newly
launched e-catering service. We have
plans to go public in 3-5 years and become
an Rs1000 crore company, and close FY15
with a 30% growth.
What are some of the policy measures
that you would like to be changed as
far as your business line up goes?
S
All I would seek from the government is
to move forward the Reforms agenda.
I would expect the government to fasttrack pending matters like GST as it would
S
F
18 | The Analyst • October 2015
The Analyst_Oct2015.indb 18
F
15/09/2015 08:02:10 AM
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15/09/2015 08:02:10 AM
Interview
A PIXEL
PERFECT VALUE
PROPOSITION
W
hat are the complexities
involved in the value chain?
First, let me start with detailing
about our vast product portfolio. Canon
India markets a comprehensive range of
over 200 sophisticated and contemporary
digital imaging products in the country.
These include digital copiers, multifunctional peripherals, fax-machines,
inkjet and laser printers, scanners, All-inones, digital cameras, digital camcorders,
dye sub photo printers, card printers and
cable ID printers.
We are operating in very volatile
segments, such as office automation &
consumer electronics wherein technology
changes very quickly. We have photo
copiers which go into office automation,
and we have consumer products like
cameras. The challenge is that on one
hand, we have distributors who do
stocking and subsequent sales. That means
the shipment size for such distributors
would be much bigger. On the other hand,
which are our own brand stores where,
walk-in customers would ask for the latest
model of high-end camera, at a very
short notice. So there lies the complexity
of managing big shipments to managing
small, but highly time bound shipments.
Our underlying mantra is to delight our
customers by making the desired products
available as per their expectations. We at
Canon look into customers’ preferences
and act accordingly.
What are the nitty-gritties involved in
managing supply chain at Canon?
Since Canon does not have manufacturing
facilities in India, the supply chain consists
of sourcing & importing the products to
India from various parts of the globe and
then distributing them to various parts of
the country through National Distributors,
Regional Distributors, Dealers, Brand
stores or directly to Corporates. We
encounter different challenges in both the
aspects. In terms of importing into India,
the challenges would be on the high transit
times, high cost of operations, time taken
for custom clearance and some regulations
such as BIS, which delays the whole
process of faster and efficient importation.
When it comes to domestic supply chain,
the challenges are enormous such as
infrastructural roadblocks, connectivity,
cumbersome documentations, lack of
professionally managed 3PL, etc. These are
all the challenges that we pass through on
daily basis to get things done and that too
in the most efficient manner.
How do you manage such a strong value
chain?
To tell you the facts, at present, Canon has
550 primary channel partners, 14 national
retail chain partners, and over 6000
secondary retail points. Canon's service
reach extends to over 4000 towns with
19 Canon camera service centres and 41
printer Canon Care Centres. Canon India
also has 146 authorised service centres for
printers and 180 camera collection points.
We have more than 150 brands stores in
India and expanding very fast. You get
an experience of the latest models in
our Canon Brand stores and can avail the
product in the shortest possible time. This
way we are able to better connect with
our customers and know their preferences
well. We have dealers and distributors as
well as retailers and on the other hand,
we have government tie-ups for their
requirements.
Canon's logistics division, which
focusses on transporting products safely
and on time, provides advanced logistics
services with high customer satisfaction
rates. We achieve this by selecting
shipping routes and partners to improve
shipping quality, and by ensuring packing
quality that takes into account storage
and shipping conditions.
The system, which comprehensively
manages information spanning from
production to shipping, sales and
inventory, enables us to promptly respond
to fluctuations in market supply and
demand. Additionally, it has shortened
overall shipping lead times.
What are the global best practices
adopted & implemented by you in India?
We bring into India the best products using
the best supply chain partners. And then
ILLUSTRATION: JAY LIMBACHIYA
With the tagline of ‘Delighting You Always’, Canon has set the standards high for an unparalleled
supply chain. In an exclusive interaction, Mr. Ashutosh Varshney, Head – SCM & Logistics, Canon India
Pvt. Ltd., shares his success mantra to deliver products faster & safer to grab major market share. With
this interview, Prerna Lodaya explores what makes Canon click & capture happy moments so flawlessly.
Excerpts…
20 | The Analyst • October 2015
The Analyst_Oct2015.indb 20
15/09/2015 08:02:11 AM
Interview
within India, we are working with best
in class service providers who are able
to offer services by which we are able to
send products faster, safer and in a more
satisfying manner to the customers. Going
by our tagline, ‘Delighting you always’, we
have been able to offer a very pleasing and
satisfying experience to our customers by
partnering with these companies.
What are the key parameters on the basis
of which you select a 3PL provider?
We are in continuous process of
formalising a structure to lay out a very
stringent yet smooth operating process
with our 3PLs. We prefer to work with
one 3PL Company who can fulfil all our
requirements. We analyse their processes,
their infrastructure, the quality systems
they have adopted, the way they manage
their operations and basis that we take a
call for our services. All warehouses follow
the same sets of standards and processes.
Having said that, once we partner
with a 3PL company, we sincerely believe
in having a transparent & long term
relationship. Our systems get connected
and we have regular interchange of
information flow. Such information is
shared on our customer portal, where
they can view real-time status of their
orders and track their shipments.
There is a thrust on ‘green procurement’
at Canon. Kindly elaborate on that.
All the Canon products that a consumer
buys
are
manufactured
keeping
environment in mind. As far as SCM
is concerned, our emphasis is to use
eco-friendly vehicles with better fuel
consumption, have lesser carbon
emissions with shorter routes. Within our
offices and warehouses, we try to save
electricity, use solar panels & save paper
in our SCM operations.
Guided by its corporate philosophy
of ‘Kyosei’, Canon Group has been
conducting
global
environmental
conservation activities. One of these
activities is green procurement, in
which procurement and purchasing of
environment-friendly materials, parts,
and products are prioritised when
necessary resources are procured and
purchased. Canon would like to proceed
with ‘maximisation of Resource Efficiency’
together with suppliers to realise global
environment conservation. To attain this
objective, the Canon Green Procurement
Standards prescribe the conditions for
starting dealings with suppliers.
Each supplier is asked to develop and
operate an environmental management
system related to business activities and
supply chain management in the following
aspects; first, it allows firms to increase
the volume and complexity of information
which needs to be communicated with the
inter-trading partners. Second, it allows
firms to provide real-time supply-chain
information. Increased access to real-time
information enables Canon to synchronise
its inventory level, delivery status, and
production planning and scheduling which
enables firms to manage and control
its supply chain activities. Third, it also
facilitates the alignment of forecasting and
scheduling of operations between Canon
and its supply chain partners, allowing
better inter-firms coordination. Exchange
of information has revolutionized most
Canon would like to proceed with 'Maximisation of Resource Efficiency’
together with suppliers to realise global environment conservation.
To attain this objective, the Canon Green Procurement Standards
prescribe the conditions for starting dealings with suppliers.
the system for management of chemical
substances in products to achieve the
expected performance level based on
the requirements stipulated in the Canon
Green Procurement Standards. Based on
that, we evaluate our suppliers.
Kindly elaborate on the tech tools
deployed by you at Canon.
Information sharing requires firms to
exchange strategic supply chain information
and not only transactional data, such as
materials or product orders. Canon has
implemented Integrated Information
System (IIS) through systems like Electronic
Data Interchange System (EDIS). EDIS
is designed for Canon’s suppliers, in
which quotation or order data can be
transferred between Canon and suppliers.
To facilitate this, Canon also engages in
the development of supply chain partners’
information sharing system.
IIS plays a central role in Canon’s
of Canon’s operation leading to a greater
visibility of technology and resources.
Thus,
benefiting
Canon
through
quality assurance (i.e. conformance to
specification by Canon to its partners, in
terms of consistency of services provided
by its agents globally), synchronised
distribution system, and timeliness to
market (through reliable production
planning, ordering and distribution
systems). However, Canon needs to
carefully consider which information
to disclose and exchange among its
supply chain partners. For instance,
possible patent conflicts may arise from
specific buyer-supplier investments and
information-sharing
in
supply-chain
integration or alliances when intellectual
properties and technologies are shared
among key suppliers or customers within
the supply chain.
We work in one of the most advanced
ERP packages. Right from our parent
The Analyst • October 2015 | 21
The Analyst_Oct2015.indb 21
15/09/2015 08:02:13 AM
Interview
company to our channel partners as well as
retailers, are all connected electronically.
We have Electronic Data Interchange (EDI)
happening frequently. Because of this, the
entire value chain gets to know the exact
status of the order.
Your views on talent acquisition &
retention…
At Canon, we are not-so-strong
compartmentalised in different functions
of sales, marketing or supply chain.
We are part of one Canon family. Our
company has very strong HR practices and
there are several opportunities for each
employee to actively participate in various
activities. That’s why talent acquisition is
at a much higher level. We also have the
best retention rates for the past several
years. We are proud to be rated among
Top 20 best companies to work for in
India. People who work with Canon not
only feel delighted and content, but also
feel proud to be a part of such a strong
ethical company.
What would be the impact of GST on your
line of businesses?
GST is expected to bring in lots of changes
in the SCM model within the country. We
hope that along with tax implications,
there would be lot of reforms on transit
FAST FACTS
zz Canon started out in 1937 with the
vision to make the best camera for
the world. More than seven decades
later, it is a global leader not only in
photography but also with a wide
portfolio of products for consumers
and businesses. Canon Singapore
Pte. Ltd. was established in 1979 and
oversees the South & Southeast Asia
region.
zz Canon India forayed into the retail
space with the launch of its exclusive
brand retail store Canon Image Square
(CIS) in 2011. Starting out with 50
stores, Canon added 43 stores in 2012
alone and now owns 130 CIS stores
across 65 cities in the country. Canon's
unique initiative to tap B, C and D-class
cities of the country was instrumental
in this regard.
What’s your leadership style?
My simple mantra is to be the one among
the team and that’s what has made
my team a truly exceptional force at
workplace. One should be an integral part
of the team be it a challenging time or
rejoicing success.
documentation, including permits and
other entry documents. Together, this will
bring substantial reforms in doing business
within the country.
How do you perceive the supply chain
landscape in India?
In my opinion, supply chain in India
will witness a sea change. Warehouses
in India will get equipped with hi-end
technologies and automation as well as
they will be much bigger in size owing to
the centralisation of warehouses from
more to a few owing to the advent of GST.
I believe we would see more organised
players coming in the space and this would
surely aid in streamlining the supply chain
landscape in the country.
Global Opportunity Index 2015
Mr. Ashutosh Varshney has done
B.Tech from Indian Institute of
Technology, Roorkee. Having close to
three decades of experience in varied
functions, he has a great combination
of strategy, planning and execution,
with excellent people skills and
leadership abilities.
Global Opportunity Index Top 10 (2015)
Foreign direct investment has never been more important
in catalysing growth, whether in the developed or
developing world. Although equity markets around the
world have largely recovered since the financial crisis, global
capital flows have contracted sharply. The Milken Institute’s
Global Opportunity Index provides policy makers and
investors vital information on policies that can best attract
FDIs, expand economies and accelerate job creation. The
index is also a guide for countries seeking to improve their
business environments and attract investors who commit
long-term capital, rather than move it around as a fleeting
portfolio tactic.
Rank
Country
Composite Score
1
Singapore
8.70
2
Hong Kong SAR, China
8.47
3
Finland
7.88
4
New Zealand
7.81
5
Sweden
7.79
6
Canada
7.73
7
Norway
7.64
8
United Kingdom
7.64
9
Ireland
7.61
10
Malaysia
7.57
The 3 nations indexed as how they ranked overall and in five subcategories
Hong Kong SAR, China
Singapore
India
Score
Rank
Score
Rank
Score
Rank
Composite
8.47
2
8.70
1
4.90
83
Economic Fundamentals
7.86
1
7.64
2
4.00
89
Ease of Doing Business
8.52
2
8.78
1
4.21
118
Quality of Regulations
8.30
8
9.20
2
4.60
99
Rule of Law
9.20
2
9.20
2
6.80
24
Source: www.globalopportunityindex.org
22 | The Analyst • October 2015
The Analyst_Oct2015.indb 22
15/09/2015 08:02:14 AM
Interview
MAGIC @RECIPES
YOUR DOORSTEPS
Born out of a passion for cooking and exploring international cuisines, Chef’s Basket is probably the
first Indian brand offering youngsters to try gourmet cuisines at the comfort of their home. Set to create
a mark in the humungous food business, this brand is poised to create many firsts in ‘Ready To Cook’
category… reports Prerna Lodaya.
I
t’s a right saying that to be a successful
entrepreneur, you have to possess
the 3 Ps – passion, perseverance and
promotion skills. It’s the ‘Never Say
Never’ attitude of these young people,
which has made India the entrepreneur
hub of the world. One such start-up,
which has been bearing fruit of hard work
right from the day of inception is Fizzy
Foodlabs (Chef’s Basket). Born with an
idea to serve home‑cooked international
cuisine for people who love cooking,
Chef’s Basket is the brainchild of three IIT
Bombay graduates. Chef’s Basket believes
in providing fine-dine experiences at
home centred around world cuisines.
The proud founders and self-proclaimed
food freaks, Nipun Katyal, Varun Jhawar
and Manish Tirthani share a passion for
cooking good food! Interestingly their
ultimate inspiration came from the TV
Series MasterChef Australia,
Ask these youngsters about this unique
idea and how did it culminate into a
promising brand called Chef’s Basket, pat
comes the reply… All three of us were
batchmates back at IIT Bombay and great
friends. “We discovered our passion about
brands and brand building, right from the
and portion packing didn’t exist in the
world foods space. Although restaurants
were mushrooming, consumers were
experiencing global cuisines, but the same
wasn’t really happening in their kitchens
owing to the lack of ingredients available.
While I was working with Booz&Co and
got exposed to understanding the FMCG
and Retail from the outside, Varun worked
at P&G – managing product supply on a
pan-India scale. We realised that there
existed limitless opportunity as there was
no ‘brand play’ happening in Indian FMCG
space except for a few big giants. This
is how ‘Chef’s Basket’ was born and we
introduced the category of Recipe Kits in
India – Italian Pastas, Mexican Burritos and
Thai Green Curries n Jasmine Rice.”
time we worked together as a part of the
Mood Indigo team (College Fest). Most
importantly, all three of us are big foodies
and after we graduated, half our salaries
would be spent on trying out new cuisines,
and getting inspired from MasterChef,
preparing new dishes. While we were in
the midst of exploring our passion, we
realised a big gap in the market where
ingredients were not really available
Portion Packing
Bringing a completely new concept into
the Indian food sector, ‘portion packing’,
these entrepreneurs have secured a
leadership position for themselves right
from the word go. Informs Nipun, “Portion
packing is the core USP that we have.
Be it shampoo, oil, in every category,
portion packing has worked very well,
so we thought of applying the same
phenomenon here. As everyone would
not like to eat the same food every day
and it's going to be once a week affair, we
tried to create such a kit wherein people
get the exact portion required to prepare
a meal of one or family. They don’t have
to store it. This concept worked well. In
2012, we started working on this idea,
and by 2013, our product started rolling
in the market.”
They have an extensive network of
The Analyst • October 2015 | 23
The Analyst_Oct2015.indb 23
15/09/2015 08:02:14 AM
Interview
star chefs who work on the product
development along with a team of in-house
food technologists. Once a product has
been developed, it is vetted by the chefs’
panel for its taste and flavour (sensory
analysis). There is also a group of people
who have signed up with Fizzy Foodlabs to
be on their tasting panel. The panel gets to
taste any new product launch and if there
are any suggestions or changes then the
product undergoes iteration before its
final launch into the market.
Market Penetration
The gourmet food market in the country
is estimated to be worth Rs300 crores.
The pasta and noodles category is pegged
at approximately Rs5000 crores. There is
so much to do and offer. India’s Readyto-Eat (RTE) food market is estimated
to touch Rs2,900 crores in 2015 and is
projected to grow at a CAGR of around
22% during 2014‑19.
In India, food is more than just a meal
for the family. Owing to this very fact,
these youngsters decided to go with
‘Ready to Cook’ concept. Ready-to-Eat
has not worked in India because it’s a
cultural gap. According to Nipun, there
We are proud of the innovation
that we bring to the market
place through our brands,
products and formats.
was a comparative study done by Harvard
Business Review that compared canned
soup and powdered soup. In India, the
canned soup didn’t work, however the
powdered soup worked. They both don’t
have preservatives, but just because you
are adding boiling water, it gives you the
feeling that you have cooked it fresh.
That’s the key insight here – ‘The consumer
wants to give the final ‘fresh’ touch to the
product, while still seeking convenience’.
Nipun further elaborates, “Though the
world foods category has been clocking a
steady growth, the reach and acceptability
was still confined to metros and that too
very select set of consumers. With this
innovative concept, we have been able to
disrupt the world foods category to capture
consumers with their varying current
consumption habits.” These habits are:
yy Consumers who are already purchasing
products for Italian/ Mexican Cooking
at home – Chef's Basket offers them
with a great deal of convenience and
a better taste! This is a relatively small
fraction.
yy Consumers who aspire to cook world
food at home, but have been sceptical
so far due to recipe know-how,
ingredient availability, costs associated
(due to no portion packs) and
certainty of outcome – Chef's Basket
value proposition is highly suited for
new trials giving the consumers the
confidence to be able to cook these
recipes conveniently at home – This is
a relatively large fraction.
Ask about their position in the market and
quickly comes the response, “We are the
Number One player in this category. It
was non-existent before we introduced
recipe kits in the country.” In the West, the
cooking culture has not really flourished.
‘Ready-to-Eat’ concept has really worked
well there in strict contrast to our country.
The potential of recipe kit here is huge.
Highlighting about the promising
expanse and scope of the business
proposition, Nipun says, “We are actually
serving around 2 Lakh meals every month
with very few SKUs. We are going to launch
noodles very soon. Then there is going to
be the introduction of Rice Series. We are
in a very strong position at this point of
time to capture the market as far as this
category is concerned. We have been in
constant touch with the industry leaders
in the food business, and we keep asking
them about the fortunes of this category,
they all seem to be gung-ho about such
a unique concept. People today are
becoming more and more experimental.
Gone are those days when we used to
say that let’s go to a restaurant, when we
were only limited to having Indian food.
The expanse has increased and so has the
experience. We are catering to the new
generation - ‘the millennials’ who are
open to exploring all global cuisine.”
Challenges
Like any start-up, pitfalls are part & parcel
of any business’ success and same was the
case with them as well. Chef’s Basket faced
many challenges when they entered the
world of Food: lack of investments, longer
sales gestation periods, supply shortages,
and even lower shelf stock (as the traders
found that the initial packaging occupied
too much space on the shelves). The
founding team took time for planning and
trials, before they actually launched in the
market. Says Nipun, “We took about a year
from the day we started Fizzy Foodlabs
24 | The Analyst • October 2015
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Interview
and when the product hit the market.
Chef’s Basket Recipe
It’s a lot of trial and error before you
Kits and Explorer are
know what scheme or product works.”
a complete set of
But that didn’t deter their passion to
premium and authentic
venture into something unexplored
ingredients, to help you
and the results are quite fructifying
prepare dishes from
within just 24 months.
across the globe. The
According
to
Nipun,
“The
ingredients are handuniqueness of our idea is what helped
picked from their origins
us in sailing through tough times.
including Italy, Spain and
When we actually took our products
Morocco and Mexico for
to the industry veterans, the minute
an authentic culinary
they saw the product, they knew the
experience and an
advantage of it and the lucrativeness
impeccable taste. Every
of the business idea. Almost all of
product is 100% natural
the retail chains were supportive.
and has no artificial
The category was new. Yes, at this
colours, preservatives or
time, it’s a very small category in the
flavours.
ocean of food business. This category
holds huge potential going ahead with the
Packaging (MAP). With this, we can deliver
increasing number of international cuisine
100% natural products at the same time
lovers. We are very aggressive when it
maintaining a higher shelf life. The sauces
comes to executing. More importantly,
undergo the rotary retort treatment
when there is alignment from the top
which is basically a high temperature
management, things become easier.
sterilisation – so that the shelf life of the
I think the current retail ecosystem is
product is enhanced and we don’t have
favouring entrepreneurs a lot. Yes, there is
to add any artificial colouring agents or
an investment required, overall it’s a winpreservatives. We take pride in saying that
win situation. In food business, uptrading
Chef’s Basket is the 100% natural brand.
phenomenon is going to catch up soon
That’s what differentiates us.”
and that’s where we come in.
Omni-Channel is the Way Ahead
For every company these days, to
gain major market share, they have to
be present across channels. Seconds
Nipun, “We are already in e-commerce
space. When we started two years, food
was a non-existent category in online
marketplace. It’s a recent phenomenon.
We are currently category number One
in the Italian section for Amazon.” He
further adds, “We have clear strategies
for all the channels be it brick and
mortar shops, hypermarket or online
marketplace.” You have to understand
different consumer segments and position
products accordingly. “Our strategy is to
get into multiple categories with relevant
products positioned correctly for the
relevant consumers,” he says.
Delivering Freshness
Having stepped into the gigantic food
sector, they very well know that operating
in this sector is no child’s play. They have
clearly curated their path to progress.
According to Nipun, if you really care
about your brand, you have to keep a
constant check on your processes, quality,
and above all, food safety. “I believe that
even if you have world-class recipe and
you have packaged it very well, till the
time it is not backed by state-of-the-art
technology, it will not be successful. We
have heavily invested in state-of-theart technology. One of them is rotary
retort. Another is Modified Atmosphere
boutique stores, we deliver ourselves
through dedicated vehicles.
On An Exponential Growth
High on spirits and passionate about being
the best in class, the company has taken
the right route to exponential growth.
Determined Nipun while deliberating on
their growth plans informs, “Our vision is
that we want to be the next General Mills
of the world. Chef’s Basket is the first brand
The market is growing and the ecosystem for start-ups in food business
is very conducive. If you have a good product, you will definitely sail
through. The industry admires your courage to come out and make a
difference in spite of being short on resources.
Sourcing Strategy
The company has charted out its sourcing
strategy well – be it at the back-end
or the front-end. Talking about backend sourcing, Nipun informs, “Some
of the components are imported from
Italy, Spain, Turkey while some of the
ingredients are sourced locally. We
have actually got multiple vendors who
already have an existing sourcing set up.
Not only this, our sourcing team helps
our vendors in sourcing the best quality
products, which he was not sourcing
till date. We have also got into contract
farming with our vendors for ingredients
which are not available such as Mexican
peppers, Jalapeno, etc. We have a very
strong focus on capability building of
our partners. We are also enhancing
real-time tracing of the entire sourcing
cycle and engaging our vendors heavily.
We have helped them in identifying right
equipment for their needs.” “We have
three different channels: online, brick &
mortar – hypermarket, boutique food
stores, and then high frequency stores
having general trade outlets and food
bazars. For each of these channels, there
is a different sourcing strategy. We have
distributors for high frequency outlets
in Mumbai & other regions while for
that we have launched. Within this, there
are three sub-categories: Explorer, Recipe
kits and Rodeo. We will continuously keep
bringing new innovations in the market.
In the next two months, we are going to
launch pasta which is priced at Rs49 for
kids because our forecasting showed that
there is a huge percentage of mothers
who are buying pasta for kids, so it makes
sense for us to venture into that space
as well. Besides that, we will also be
expanding our presence. At present, we
are working in 12 cities, going ahead, we
will be expanding to 8-10 more cities in
the next one year.”
With such aggressive expansion line
up, only sky is the limit for these bunch of
youngsters. Surely an advice or two from
them would greatly aid GenX cadre to get
ready for the growth diaspora. To which,
Nipun says, “Keep your ears very close to
customers. They are your biggest asset.
Get compatible co-founders to work
with and make sure that as a founder you
always meet people, officials, or experts
yourself.” Such inspiring thoughts would
definitely serve as a path-breaking avenue
for other start-ups to follow suit.
The Analyst • October 2015 | 25
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Interview
TREADING SUCCESS
BEYOND
TECHNICALITIES
“Modern day supply chain managers have to crisply articulate their views, be good at negotiations,
not only with vendors but also internally with different stakeholders. They have to move away from
being purely functional managers to business managers,” asserts Anand Maithani, Head – Supply Chain
Management (Asia Pacific, Middle East and Africa), Apollo Tyres Ltd, during an exclusive interaction
with Prerna Lodaya. Excerpts…
H
ow complex is the supply chain at
Apollo Tyres?
At Apollo Tyres, supply chain
management (SCM) includes the entire
value chain—from demand management
at the end customer to delivery of finished
goods at the customer point irrespective of
the location.
Just to give you a perspective, we
ship around 1000 tonnes a day. That’s
the equivalent of shipping out 3 Boeing
747s every day. We have four plants in
India, which ship out products across
150 locations in the country. We are the
suppliers to all major OEMs in India. We
also export to over 70 countries around
the world. We produce over 1200 SKUs.
Even within that, there are complexities
of having varied regulations of each
and every country as well as inter-state
regulations. The same tyre in India might
need an ISI marking but if you sell it to
Brazil or Europe, it would be a different
marking. That’s the kind of complexity we
deal with on a daily basis.
We work on both, make-to-order and
make-to-forecast depending on our way to
market and running these simultaneously
comes with its own challenges. We run on
a pull based model, which is very demand
driven.
Apollo's global ambitions have called for
a recast of its supply chain from a pushdriven to a pull system, what it calls the
replenishment model. Please enlighten us
on the same.
Earlier we had a push based supply chain
strategy. That meant we would make a
forecast and based on that, we would
position inventories across our entire value
chain. But as you know, in reality, forecasts
Supply chain has a major role to play in
this whole process. As and when sales are
increasing, you have to make sure that
your product is always available with the
dealers and direct stores to ensure that all
the market and product related initiatives
yield the desired results.
are never fully accurate and we would end
up losing valuable time and consequently,
sales. It was then that we decided to move
towards a pull based approach. This model
is more demand driven than a push based
model. Starting from the warehouses
that service our customers, our regional
distribution centres and even our plant
warehouses, all are now on a pull based
model. We produce what is sold. This
means that we don’t have excess inventory.
We reduced our planning horizon to
one day. We look at our sales figures
every morning and that’s the basis of our
production and distribution. This system
has made our supply chain very agile and
responsive. The entire supply chain now
is reacting to what is happening in the
marketplace rather than just a forecast
which was made at the beginning of the
month and will not be 100% accurate. That
change yielded extremely good results for
our organisation.
What are the many firsts attached with
Apollo SCM?
Apollo is one of the first companies in the
tyre industry to start using containerised
transportation. It has two advantages. One
is that safety of the tyres goes up manifold
and there will be no damage. Moreover,
per tyre cost goes down when you use
containerisation. The next big initiative
taken by us is the pull based model that we
have implemented. Not many companies
have deployed this mechanism to the
fullest. Especially in our industry, we are
definitely the front-runners in using this
system. Most companies in other sectors
use it for distribution planning. We have
implemented this system right up to the
production level.
What are the real world problems faced
by supply chain managers?
In the dynamic business context, the
ecosystem of supply chain and the
Apollo has increased its focus on
retreading. What crucial role does supply
chain play in this new initiative?
Retreading has been a major focus area
for us lately. As the demand for retreading
is increasing, one has to be very agile and
responsive to cater to those demands.
26 | The Analyst • October 2015
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Interview
evolution of patterns & expectations are
the present day challenges in supply chain
management. Getting into depth, the first
challenge is the business environment.
On one hand, you have ever-changing
demand-supply scenario while on the
other hand, you have a globalised supply
chain. An event in one country has a huge
impact on the product flows in all parts of
the world. The risk management of such a
globalised supply chain itself has become
a big exercise. The second one is the
regulatory systems. We have been talking
about the implementation of GST since
long, but it is yet to be implemented.
The third is infrastructure bottlenecks.
This is one of the biggest challenge that
all the supply chain managers are facing.
The next challenge is talent acquisition
because the supply chain professionals in
India are not abundantly available as any
other profession.
The scenario seems to be changing.
Most companies have focussed on sales
and marketing talent. Logically most
students are still attracted towards that
area. Lately corporates are also realising
the fact that supply chain is an integral
part of their organisations and has
become a boardroom agenda. Now even
companies are also promoting such talent.
These days, students are also opting for
specialisation in supply chain looking at
the current demand.
Skill development and training has been
a MUST for the industry. Your take on the
same…
Apollo Tyres has a very good functional
training programme. We have a very
robust system of identifying the job
needs of each person and depending
on that, training is imparted to skill
sets of that person. Supply chain is a
closely integrated function within the
organisation. In SCM, we believe it’s not a
rope ladder to the top but a spiral staircase.
We rotate supply chain professionals
through different departments and
functions, which enriches their skills and
gives them a broader perspective of the
business. We also recruit internally from
the sales team to get customer perspective
in the function.
How has been the role of technology in
supply chain? What are the tech tools
implemented by you?
Technology has to be an enabler. We have
to make sure that we are not slaves of
technology just because it’s available. You
need to have robust business practices
and then technology just needs to aid in
automating these processes to make it
faster and improve the quality of decision
making. We have deployed the entire suite
of SAP. We are deploying a state-of-the-art
Oracle Transport Management System.
ideas get rewarded and this way we keep
them motivated as well. It is implemented
across the value chain.
Sustainability and innovation are the key
pillars of Apollo growth. How does supply
chain help in enhancing the same?
Across the value chain, we engage very
constructively with the communities
that are around our operations. All our
initiatives are in that area. They are aligned
to our sustainability objectives. We have
an initiative called ‘Clean My Transport
Nagar’ which aims at improving waste
management and cleanliness of identified
What are the key elements to a successful
supply chain management?
Supply chain is now on the CEO agenda.
What’s expected from a supply chain
manager is now more than functional
skills. They have to transcend the
technical boundaries. More than supply
chain management, it has become
business management. They have to
crisply articulate their views, be good at
negotiations, not just with vendors but
internally with different stakeholders. They
have to move away from being purely
functional managers to business managers.
In a nutshell, business management skills,
negotiation skills and the dire need for
industries to collaborate with academia are
the trending requirements for managing a
successful Supply Chain.
Supply chain managers are like the midfielders in a football game, right at the
centre, aware of what is happening at the
backend as well as the frontend, and thus,
in a way responsible for the whole process.
We have moved to this pull based
system only 18 months back. To be honest,
professionally while this transformation
was very fulfilling, it wasn’t challenging at
Supply chain managers are like the mid-fielders in a football game,
right at the centre, aware of what is happening at the backend as well
as the frontend, and thus, in a way responsible for the whole process.
all. That’s because change management
is something which comes naturally to
everyone at Apollo. While it was a huge
project because it completely changed the
way the entire ecosystem at Apollo worked,
it was made easy because the capability to
embrace change at Apollo is very high.
Whenever in doubt; blame supply
chain!
transport hubs in India. It also generates
awareness about health and sanitation.
It offers a spectrum of services like waste
collection, waste segregation, cleaning of
the streets and lanes, creating compost
from biodegradable waste, waste recycling
and creation of livelihood opportunities
for rag-pickers. If you walk into any of our
Regional Distribution Centres, you will find
that we make use of natural light as much
as possible to reduce power consumption.
Almost 80% of the time, they work on
natural light. These are just some of the
illustrations of the sustainability initiatives
taken by our company. On the innovation
front, we engage our teams and young
talent to come forward and give us ideas
to enhance business capabilities. The best
Mr. Anand Maithani is an Operations
specialist with diverse industry
experience in the area of supply chain
management covering demand-supply
management, inbound, outbound
and in-plant logistics. Before joining
Apollo Tyres he has worked with
PepsiCo India and Philips where
he was involved in creating and
designing systems in the Operations
Planning part of the Supply Chain
function. An Electrical Engineer from
the Nagpur University, Mr. Maithani
also holds a post-graduate diploma in
Business Management from Symbiosis
University, Pune. He has keen interest
in sales & operations planning,
network optimisation and supply
chain capability building.
The Analyst • October 2015 | 27
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SNIPPETS
THE LOGISTICS BEAT
IT’S HAPPENING IN INDIA
Indian consumer durables market
to reach $20.6 bn by 2020
India's consumer electronics and appliances
market is projected to be worth $20.6 billion
by 2020 on account of factors such as high
disposable income, easy consumer financing
and organised retail, says a report.
India is also expected to rank fifth in the
consumer durables market in the world
by 2025, says a joint report by Consumer
Electronics and Appliances Manufacturers
Association (CEAMA) and consultancy
firm EY. “The Indian market for consumer
electronics and appliances is around $9.7
billion and has grown at a CAGR of 9.7 per
cent over the 2010-2014 period and is poised
to reach $20.6 billion by 2020,” it said.
While the urban market accounts for the
majority share (65% of the total revenue) in
the consumer durables sector in India, future
growth is expected to be driven by the rural
market, as the government increases its
focus on rural electrification.
At present, the consumer electronics
segment constitutes 17% of the total Indian
electronic products, which is the third-
highest share. The segment consists of TV,
DVD players, set top boxes, home theatre
systems, MP3 players, audio equipments,
digital cameras and household appliances
such as washing machine, ACs, microwave,
refrigerators etc.
According to CEAMA estimates, the LED/
LCD market is expected to grow at around
20% from 2014 till 2020, while refrigerators
are expected to grow at around 10% in that
period. Air-conditioners would continue to
rise between 6-7% between 2014 to 2020,
while washing machines are expected to
grow up to 9% during the period.
Government keen to bring shipping
containers under Make in India
India wants to manufacture shipping
containers instead of relying on imports
as part of a plan aimed at promoting the
'Make in India' campaign. Officials said the
government will soon appoint a consultant
to conduct a study into the capacity available
within the country to take up container
manufacturing. It will also approach foreign
companies if technological expertise is
required in building specialised containers.
Shipping lines in India order containers
of Twenty feet Equivalent Unit (TEUs) from
China, Korea and various European countries.
Many also buy second hand containers from
the market. Since there are only a handful
of container shipping lines in the country,
a container manufacturing facility has to
be able to cater to international market to
sustain itself. "In the short term, there may
be a cost disadvantage but in the long term,
this will pay off as trade is getting more
containerised," said Vishwas Udgirkar, senior
director, Deloitte India.
Container trade in India is growing at over
12% a year. The country's largest container
facility at the Jawaharlal Nehru Port has
a capacity of 4 million TEUs. JNPT handles
56% of the total containers, followed by the
Chennai port which handles 25% of such
cargo.
“There are many companies in the public
sector which have idle capacity and can
get into these new areas of manufacturing
for their own and country's benefit,” said a
senior government official.
Moving trade to containers is considered
to have various advantages such as safety of
cargo against damage and theft. It provides
better space utilisation of the ship, leading
to lowering of cost. It also gives way to
carrying out multi-modal transportation
since a container can be moved easily from
ship to truck or rail. Besides, as India plans to
create trans-shipment hubs on its coastline,
the movement of all such cargo will be
done in containers.
Government
extends scheme to
boost electronics
manufacturing by
5 years
To
boost
manufacturing
of
electronics' items, the government
extended the 'Modified Special
Incentive Package Scheme' (MSIPS)
by five years and also expanded the
scope of the programme to cover 15
new product categories.
The decision was taken at the
meeting of the Cabinet headed by
the Prime Minister Mr. Narendra
Modi to promote 'Make In India' and
'Digital India' initiatives, sources said.
The demand for electronics in
India is expected to reach USD 400
billion by 2020. The electronics
sector has the potential to attract
USD 100 billion investment and
provide jobs to 28 million people.
The 15 new product categories
included in the MSIPS are: smart
cards, consumer appliances (like
washing machines, refrigerators, air
conditioners), electronic product
design, optical fibres and Internet of
Things (IoT) products, among others.
The government has also made
it easier for companies to receive
incentives under the MSIPS scheme.
"The scheme has been extended
for a period of five years beyond July
26, 2015. The extension of MSIPS
scheme is a big boost towards
making India a global destination for
electronics manufacturing," sources
said.
Under the Digital India and Make
in India programmes, the MSIPS has
attained a renewed vigour, source
said adding in the last 14 months,
32 proposal involving investment
of nearly Rs9,000 crore which would
generate direct employment for
nearly 12,000 people and indirect
employment for 40,000 people have
been approved and investments are
underway.
28 | The Analyst • October 2015
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15/09/2015 08:02:22 AM
SNIPPETS
FROM AROUND THE WORLD
General Mills sets ambitious goal for greenhouse gas cuts
Golden Valley, Minnesota: General Mills is
committed to reduce absolute greenhouse
gas emissions by 28% across its full value
chain – from farm to fork to landfill – over
the next 10 years. General Mills’ long term
aspiration is to achieve sustainable emission
levels in line with scientific consensus by
2050. As outlined by the Inter-governmental
Panel on Climate Change (IPCC), scientific
consensus suggests a reduction of 50-70% in
absolute emissions by 2050.
“For 150 years, General Mills has served
the world by making food people love. Our
aim is to be around for another 150 years,”
said Ken Powell, Chairman & CEO, General
Mills. “We recognise that we must do our part
to protect and conserve natural resources.
Our business depends on it and so does the
planet.”
“We know our greatest impact is outside
our four walls – particularly in agriculture,
ingredients and packaging. To reduce
emission levels, we must work across
our value chain with growers, suppliers,
customers and industry partners. Together,
we will identify new solutions and promote
sustainable agriculture practices that drive
emission reductions,” added Powell.
“Our pathways to achieving sustainable
emissions will be an extension of our
ongoing efforts to reduce our environmental
footprint through continuous improvement
sustainable sourcing,” said Jerry Lynch, Vice
President & Chief Sustainability Officer,
General Mills.
In addition to broadening existing
Internet of Things 'Feeds' Predictive Supply Chain
Alexandria, Virginia: When someone
mentions the Internet of Things (IoT), most
people think of electronics adoption of
a highly personalized “smart” consumer
lifestyle. But there’s much more to the IoT
story, and more specifically, its impact on the
supply chain.
Research firm Gartner recently released
a write-up highlighting what many supply
chain professionals have been weighing for
some time: the IoT trend is going to impact
businesses, and in particular, it will disrupt
the way we think about logistics. In the piece,
Gartner says a thirty-fold increase in Internetconnected physical devices by the year 2020
will “significantly alter how the supply chain
operates.” Specifically, it notes the impact will
relate to how supply chain leaders access
information, among other things.
Andy Souders, Senior Vice President –
products & strategy, Savi, further clarifies,
“The rise of the Internet of Things,
advancements in sensor technology and
new analytic capabilities has created an
opportunity for companies to better manage
global supply chains through actionable
intelligence.” The IoT brings computing and
communications power to everyday devices
and businesses, which will lead to better
business models and increased visibility in
the business process. Sensor technology is
the key force behind this growing market,
Souders said. In the B2B realm, sensor
technology is especially prominent in
measuring status of production, location of
goods and safety issues.
“The growing volume of data that has
been collected by supply chains is opening
the door to the predictive supply chain. The
industrial supply chain is not just trucks, it's
people who are making decisions and that
is why understanding human behaviour is
important, because people tend to follow
measurable patterns,” he said.
Ensuring that shipments maintain their
quality throughout the whole journey
has always been crucial, but now realtime analytics can help provide valuable
intelligence. The data speaks to human
behaviours and other factors that could
impact the quality of shipments or their
arrival time to intended destinations.
"Sensors
continuously
produce
information that contains vast potential for
commercial logistics and shipping providers
with the ability to capture, track and analyse
it. Sensors are now cheaper than ever and
their real value is in creating a repository of
historical data that can be used for predictive
analytics that provides benefits in shipping
high-security hauls like these," Souders said.
“By having full visibility into the supply
chain, from the actual trucks to the truckers
in the driver's seat, the shippers can use big
data and behavioural analytics to properly
mitigate supply chain risks,” Souders said.
Companies can use the collected data
to forecast future outcomes, prevent
operational disruptions, and improve supply
chain performance.
partnerships with organisations like Field to
Market, the Innovation Center for US Dairy
and others, the company has outlined four
specific actions to help fulfill its climate
commitment over the next 10 years,
including:
• Continue to lead the way in its own,
direct operations by investing more
than $100 Mn in energy efficiency and
clean energy. This level of investment is
in-line with the work the company has
been doing within operations to reduce
environmental footprint since 2005.
•Partner with suppliers to accelerate
adoption of more sustainable agriculture
practices that build climate-resilient,
healthy soils.
•Help consumers reduce their carbon
footprint through products and
packaging with smaller footprints.
• Support climate resiliency of farmers in
our supply chain.
Volvo Demonstrates
Adaptive Loading
System
HEYBURN, Idaho: Volvo Trucks rolled out
a drive-train system that management
hopes will give the company a larger
presence among liquid and bulk
haulers, regional distribution carriers
and trucking companies that often
deal with diminishing loads or empty
backhauls. The adaptive loading system,
built around an electronically controlled
suspension, switches automatically
between 6x2 and 4x2 power
configurations with the use of a forward
tractor tandem axle that can be lifted
off the ground. Company spokesperson
said that when a trailer is mostly full, the
lift axle places the wheels on the ground
so they can bear weight and roll freely
like trailer wheels. In contrast, when a
trailer is mostly or completely empty
and the tractor axle is not needed, up
it goes and the 18-wheeler becomes
a more efficient (albeit less lyrical)
14-wheeler. “Volvo has long been known
as a highway tractor manufacturer in the
longhaul segment,” said Wade Long,
Volvo director of product marketing. “But
this will help us on regional growth. It’s a
second opportunity for growth.” The lift
axle is made by Link Manufacturing Ltd.
of Sioux Center, Iowa, and the drive axle
is from Meritor Inc.
The Analyst • October 2015 | 29
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Interview
HEALING TO
HOLISTIC
WELLNESS
Combining the best of healthcare, nutrition and cosmeceuticals, Zydus Wellness brings to you an array
of the best wellness products to enrich your life. The recent conversation with Mr. Tarun Arora, Chief
Operating Officer and Director at Zydus Wellness Ltd, opened up many facets of healthcare & wellness in
the country. During an interaction with Prerna Lodaya, he offers insights into providing holistic wellness
the Zydus way. Excerpts…
H
ow do you see the current FMCG
sector shaping up with lot many
options for consumers to choose
from?
FMCG sector has consistently grown
over the years ahead of the overall
GDP growth rates driven primarily by
increasing reach of packaged consumer
goods to more consumers. This increase
in the penetration of FMCG products is
both in urban landscape as well as rural
areas. What is more interesting is that
new categories have come in the last
decade or so and taken increasing share
of wallet – eg. Facial cleansing products
like Face Wash and Scrubs, healthy
foods options like Oats and Low fat
butter substitutes, etc. Hence consumer
has been spoilt for options and has
been getting more discerning given the
plethora of options to choose from.
Going
ahead,
with
increasing
disposable incomes, consumers would
be willing to adopt more and more
packaged products that meet their
functional, social and emotional needs.
Opportunity for the FMCG sector is to
innovate around expanding consumer
expectations and educate the benefits of
their products to the consumers.
What’s your USP to attract customers?
Zydus Wellness has been a pioneer in
health products like sugar substitutes,
no cholesterol butter substitute. We
were amongst the first few to bring facial
cleansing products like face wash, scrubs
and peel off in India. Our approach is to
bring products based on emerging needs
of consumers in the health and beauty
spaces. We have a strong backing of a
large R&D capability to deliver relevant
products.
At Zydus Wellness, we offer innovative
products to the consumers that fits
into their ever changing lifestyle. Our
products are anchored on emerging
consumer needs around health and
beauty areas.
How do you view supply chain as a
critical business enabler?
Our products address varying needs
across consumer segments. It’s our
endeavour to make our products
accessible to all our consumers while they
are still fresh. Hence, supply chain is a
back bone of our business that enables us
to meet our consumer service objectives
efficiently while optimising commercial
requirements of the enterprise.
Please enlighten us on your distribution
plan to beat the competition.
Our distribution system is built on the
principle of making our brands accessible
to the target consumers in the freshest
30 | The Analyst • October 2015
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Interview
possible condition. Hence for Nutralite,
we work through the cold chain while for
Everyuth and Sugar free, the products
reach consumers through ambient supply
chain. We reach the consumers through
a mix of channels where consumers
like to shop our products. We are also
constantly expanding our reach as we
realise that there is an opportunity to
grow the business and make our products
accessible to more and more consumers
seeking the unique benefits of Sugar
Free, Everyuth and Nutralite.
Maintaining a transparent & healthy
distributor relationship holds the key to
profitability. How do you manage the
same? What are the unique measures
adopted by you to help your distributors
grow with you and create a growth
ecosystem?
We have a transparent system with our
distributors where we mutually agree
on the revenue and expenses to enable
achievement of target profitability for
them. This is further followed by an
efficient claim management process to
keep their investments low on market
claims. We are also creating periodic
review process to ensure that we stay
on track with the plans. As the next step,
we are in the process of automating our
distribution process with objective of
enhancing visibility of our value chain
from sourcing to last mile at retail.
We were amongst the first
few to bring facial cleansing
products like face wash, scrubs
and peel off in India. Our
approach is to bring products
based on emerging needs of
consumers in the health and
beauty spaces.
Kindly highlight Go-to-Market Strategy
implemented by you.
Our Go-to-Market (GTM) strategy as
enunciated above is built around our
target consumers for each of the brands.
As our consumers would like to buy
our products in their favourite outlets
in the pack sizes most convenient for
their individual or family consumption,
we have built our GTM keeping this in
mind. Hence we are targeting product
assortments based on geographical
preferences and shopper behaviour
across different channel segments.
We have placed emphasis on top high
potential towns. We have deployed fewer
but larger distributors with greater stake
in company business.
What’s your strategy to win major
market share?
We are significant players in most of the
brand spaces that we operate in, and
hence the primary objective of most of
the brands, be it Sugar Free, Nutralite or
Everyuth Scrubs is growing the category
and not fighting for market share. Hence
our marketing plans focus on driving
penetration – getting new consumers.
We are also exploring taking our
brands overseas. Here we would target
developing markets in South Asia and
Middle East.
Mr. Tarun Arora has rich experience
of over two decades in which he
has handled General Management
and Leadership Roles at large FMCG
companies. He has played a pivotal
role in conceptualising, launching
and renovating various brands across
categories as diverse as food &
beverages, personal care, health &
wellness and home care. His extensive
experience covers brand building,
developing Go-to-Market strategy and
innovations.
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